You want to find good altcoins?
If you are looking to invest and HODL a cryptocurrency you want to make sure you are making the right choice. Making the right choice with smaller coins is hard, which is why it’s important to know how to find good altcoins that have a better chance of exploding in price. The general rule is that the coin must provide value – meaning it must actually have a good real world use, or at least an ambitious roadmap to get there.
But before worrying about whether the coin is ‘good’, you need to know how to find out about these new coins that are potential gems.
How to find good altcoins
You have to tap into resources where people mention these new coins way before others if you want to find good altcoins. There are a few options, all of which really do require dedication. But with the potential to make money, it’s worth it.
Before looking into how to find good altcoins please understand you will hear about a lot of unknown coins. You really have to do your own research and due-diligence. Do not trust what other people tell you about a project. You need to make up your own mind on whether it is worth investing in or not. These methods are merely ways on how to find the coins; you will need to follow the guidelines in the second part of the article to research whether they have potential.
There are so many experienced traders that frequently drop gems on twitter. Get on to twitter and start increasing who you are following. Look for twitter users like notsofast, who are popular and drop advice regularly that lots of people like. You do have to be very careful, but that is just how this space is unfortunately. Just use this as a place to find out about new projects – do all the other research yourself.
Twitter users, if you find good ones, will do all the deep forum digging for you. It can be an incredible resource.
This is a forum that has a discussion section purely for altcoins. This can be a great place to find mentions of new or obscure coins. In the same regard as Twitter you must be very careful and do all your own research, but it is a great place to begin to find good altcoins. You will have to be active and dig deep on posts. It will also require a lot of research into coins to find one that is actually promising, but that’s what it takes to find these hidden gems.
The best place to find good altcoins on Reddit is in the daily discussion, or in threads specifically asking for low market cap coins. Generally Reddit will be a little bit behind the other two methods mentioned already, but it is still a great place to hear about coins with a sub $50M market cap with huge potential. Watch out for paid shills, just like anywhere else. Do your research.
So now you are able to find out about these obscure coins, how do you make sure that they are good? How do you actually find good altcoins?
You need to consider all of these below parameters. They are not all required, but each one makes up a piece of the puzzle and adds reassurance to the projects future in the space.
You should be able to find out exactly who is working on the development of the project. The team should be fully transparent. Links to their LinkedIn and details about their employment history should be provided. These will give you reassurance about the legitimacy, especially if the team has a great deal of experience.
Product & Market
Does the project already have a working product? If it does that is amazing and they are much further ahead than a lot of other coins. However, you also need to consider whether this product actually has a proper market application – the price is not going to increase if the product is extremely niche and doesn’t provide actual value. Make sure the product is useful.
Roadmap & History
Having a product isn’t required and is actually pretty uncommon at the moment. A detailed roadmap is great for seeing the development plans for the future product. You can decide whether their vision is going to provide value to a market or not. If the plans are very ambitious it is always good to look at the history of the team at meeting deadlines. If they have successfully met ambitious deadlines in the past then that is a good sign.
Having a white paper is very telling, but it is not required. If there is one it should provide clarity about the project and not use complicated language to sound sophisticated. Make sure you are happy with the white paper and it provides reassurance about the development plans. If there isn’t one it’s not a huge deal, there are great projects without them. You will have to weight the other parameters higher though to make your decision about whether the project is worth investing in.
Any project having real world partnerships is great. They solidify the fact that the project is doing good work. It is important to ensure the partnerships are legitimate as they have been faked in the past, but if there are some real partnerships in place that is great news for the project and it’s future.
Have a look at what exchanges the token is currently trading on. This isn’t for certain, but if you believe in the project but it is only on small exchanges this can be a good sign – lots of new investors may flood in once it gets added to bigger, more reputable exchanges that are easier to use. So it can be good to get in early on exchanges such as IDEX.
I like to know that there is a good community around the coin. It is good if they are supporting development, providing good ideas, developing 3rd party applications that help with adoption and just having good discussion within their platforms. Not necessary, but it is a good sign.
Do have a look at reviews of the project but take them with a grain of salt. Generally, people make reviews with an agenda of pushing the project onto others – but they will mostly provide good facts about it. So just make sure you take that into consideration and cross reference facts.
Finally, ensure that the tokens are well distributed. If the team has a large percentage of the total tokens they have way too much control over the network, which is a bad sign. Similarly, it is good to know how additional tokens are going to be distributed if at all.
If there are any signs whatsoever that put you off a coin, or make you uncertain – listen to your feelings. You don’t want to be losing lots of money in a failed project.
Thanks for reading how to find good altcoins before they explode! I hope it helps, make sure you do properly do research before investing otherwise you will be at much more risk. Investing in any small project is a risk so do it carefully.